Audit checks / E-MER-01
MER is below breakeven
Every platform can show a healthy ROAS while the business loses money on ads as a whole. MER is the store's net sales over all connected ad spend, and breakeven is what the margin allows: below it, each extra unit spent takes more than the sales it comes with can pay for. It is a whole-business figure, not proof about any one channel.
- Fires when
- MER over 14 days is below breakeven, on spend of at least 5x CPA_t.
- What to do
- Alert: do not raise budgets until MER recovers. Automation will not raise them either.
- How the impact is estimated
- risk = spend beyond what the sales left before ads, normalized to 30 days. Shipping and payment fees count only where the workspace has set them.
- Platform
- Google Ads, Meta, Shopify
- Severity
- high
- Looks back
- 14 days
- Default thresholds (a workspace can change them)
- days: 14
- spend_x_cpa: 5
- Stays silent below
- 80% of net sales with a known cost, or a stated average margin
- spend_x_cpa x CPA_t in the window
- Autopilot
- Never applied automatically.